1stdibs.Com, Inc. (DIBS) Q4 2024 Earnings Conference Call
Good morning, and welcome to the 1stdibs.Com, Inc. (DIBS) Q4 2024 earnings conference call. I’m Kelvin, your friendly neighborhood conference operator. I’m here to help facilitate this call for you.
Company Participants
- Kevin LaBuz – Head, IR & Corporate Development
- David Rosenblatt – CEO
- Thomas Etergino – CFO
Conference Call Participants
- Nicholas Jones – Citizens JMP
- Austin Riddick – Evercore
- Ralph Schackart – William Blair
Now, let’s get this party started. Our first speaker today is Kevin LaBuz, the Head of IR & Corporate Development for 1stdibs.com. Kevin, the floor is yours:
Kevin LaBuz:
Good morning, everyone. I’m pleased to report that 1stdibs had another strong quarter, with revenues up 18% year over year. Our growth was driven by a combination of factors, including increased demand for our unique marketplace of high-end and hard-to-find items, as well as our continued investment in technology and marketing.
David Rosenblatt:
Building on Kevin’s comments, I’m proud of the team’s efforts to expand our offerings and reach new customers. We’ve seen particularly strong growth in our international business, with sales up 30% in Europe and 25% in Asia. We’re also making progress on our strategic initiatives, including the launch of our new design service and the expansion of our logistics network.
Thomas Etergino:
Moving on to the financials, I’m happy to report that our gross margin expanded by 1 percentage point to 25%, driven by higher sales volumes and improved product margins. Operating income was up 25% year over year, and we’ve continued to invest in our business, with capital expenditures totaling $10 million in the quarter. Looking forward, we’re projecting revenues of $500 million for the full year 2025, up from our previous guidance of $480 million.
Q&A Session:
Now we’ll open the floor for some questions. Let’s start with Nicholas Jones from Citizens JMP.
Nicholas Jones:
David, could you talk a bit more about the growth in your international business? What’s driving that, and how do you see it continuing in the future?
David Rosenblatt:
Sure, Nicholas. Our international business has been a bright spot for us in recent quarters. We’ve seen strong demand for our unique marketplace in Europe and Asia, driven by both the growing affluence of consumers in those regions and the increasing popularity of e-commerce for luxury goods. We’re also investing in local marketing and logistics to make it easier for customers to buy from us, regardless of where they are in the world.
Austin Riddick:
Thomas, could you walk us through some of the investments you’ve made in the business over the past year, and how you see those investments paying off in the future?
Thomas Etergino:
Absolutely, Austin. Over the past year, we’ve invested in a number of areas to drive growth and improve our operations. Some of the most notable investments include:
- Expanding our logistics network to better serve our customers and ensure timely delivery of items
- Launching a new design service to help customers create custom pieces and renovate their homes
- Investing in technology to improve our website and mobile app, making it easier for customers to find and purchase the items they want
We believe these investments will pay off in the long run by enhancing the customer experience, driving repeat business, and attracting new customers to our platform.
Ralph Schackart:
David, with the increasing competition in the luxury e-commerce space, how do you plan to differentiate 1stdibs from the competition and maintain your market position?
David Rosenblatt:
Ralph, that’s a great question. While there is certainly competition in the luxury e-commerce space, we believe we have a unique value proposition that sets us apart. Our marketplace offers a curated selection of high-end and hard-to-find items, and we’re committed to providing an exceptional customer experience. We’re also investing in technology and logistics to make it easier for customers to find and purchase the items they want, and to ensure timely delivery. Ultimately, we believe our focus on quality, selection, and customer service will help us maintain our market position and continue to grow.
Effects on You and the World
Now, let’s talk about how 1stdibs’ earnings report might impact you and the world. If you’re an investor, the company’s strong financial performance and continued growth could be good news for your portfolio. The company’s expansion into international markets and investment in technology and logistics could also position it well for future growth.
For consumers, the earnings report could mean more selection and better service on the 1stdibs platform. The company’s investment in technology and logistics could make it easier to find and purchase the items you want, and the expansion of its design service could help you create custom pieces and renovate your home.
Conclusion
That’s a wrap on today’s 1stdibs earnings conference call. The company reported strong financial performance and continued growth, driven by increased demand for its unique marketplace of high-end and hard-to-find items, as well as investments in technology and marketing. The company’s expansion into international markets and investment in technology and logistics could position it well for future growth, and could be good news for investors and consumers alike. Thanks for joining us today, and we look forward to bringing you more updates from the world of e-commerce and luxury goods.
And don’t forget, if you have any questions or comments, feel free to reach out to us at any time. We’re always here to help!
